The Beer Association of South Africa (Basa) has called for strong collaboration along the entire value chain of beer production which relies on agricultural products like barley, hops, and yeast.
The association’s chief executive officer, Charlene Louw, said the craft beer industry has led to the rise of numerous small breweries, fostering entrepreneurship and local economies. Since taking over the reins, Louw has been pushing for the industry to tap into unused opportunities.
Food For Mzansi’s Tiisetso Manoko caught up with Louw to find out what keeps her awake at night in trying to make the beer industry more fashionable and attractive.
Tiisetso Manoko: Since taking over the reins as the CEO of Basa, what has been on your desk in the past six months?
Charlene Louw: It has been really getting to understand the industry. I was not appointed from the industry which is quite key. So I needed to familiarise myself with how things are being done and get the full picture of challenges and opportunities for growth for the small guys.
I also had to look at the association, [and] how we fit in and be the voice the industry needs. I have also been busy putting together a three-year strategic plan, looking at how we can make this association have a meaningful impact in the sector. We want to be the association that will elevate the sector and grow it for sustainability.
What is the sector still battling with and what do you think could be the solutions?
Without a doubt, the biggest challenge the sector is facing is the disparity in how it is being taxed. I have come to learn that the regulatory environment that the sector finds itself in is hampering the growth of the sector. The beer is unfairly and unproportionately taxed and that affects the pricing of the beer, the consumer is impacted by the increased price.
The production of illicit beer is another element that gives us a headache and that for me is the biggest challenge I am facing in the sector. We also see regulations that are not harmonised in the entire country.
In terms of microbrewers, the challenge is access to funding. There are not too many funding institutions that are willing to assist with funding for them to be able to scale themselves up, because it is quite an expensive industry to operate.
Charlene Louw is the chief executive officer of the Beer Association of South Africa. Photo: Supplied/Food For Mzansi
As the CEO, what is your ideal industry vision, and what would you like to see happening in the next five years?
I do believe there is more to do around building the reputation of beer. South Africa has a beer culture. We know that about 71% of the consumption of beverages is beer, that is how prevalent it is but even with that, I believe there is some negativity around beer.
I want in the next five years that there should be no stigmatisation, especially for women who are still shy about drinking beer. We have done our perception studies in the industry and we have discovered that there are more men drinking beer. As a woman chief executive officer, I would like to see more women enjoying beer responsibly.
I would also like the industry to explore more beers and raise the bar for our craft brewers who are coming up. I would like consumers to have more variety of beer.
I would also like to see transformation – and it is broad which I accept – and we are saying more female and black players should play in the industry and be sustainable and viable playing a significant role in the economy.
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What new ideas and innovations are out there that need to be nourished?
I think for me it is in the agricultural space, to be honest. I still believe at this point that we do not have enough research in the agricultural space to create different varieties of grains that are being used to make beer. There are small manufacturers who need to import some grain which is not grown in South Africa.
Charlene Louw with agriculture minister John Steenhuisen. Photo: Supplied/Food For Mzansi
So there is an opportunity for research and experimentation by farmers and support financially for farmers to begin to grow the different grains that are needed for beer manufacturing. So we need to tap into this opportunity and move away from imported grains, essentially getting a variety of grains right here in our own country.
What is your message to the industry and role players looking ahead to 2025?
At this point, we are working on ensuring that we have insurance that is well supported by this association, [and] we are establishing partnerships with financial institutions. We have also partnered so far with two financial institutions which are going to help our brewers with skills development and to help liquor traders with business skills so that they elevate themselves.
We want to see our liquor stores being able to give their employees payslips, professionalising the sector and bringing dignity to the workers in the industry.
We want to tell the industry that we are on a regular basis engaging the regulators and government on what they are experiencing on the ground and we will not rest until their voices are heard by the authority.
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